An International Monetary Fund (IMF) team, led by Ms. Eva Jenkner, reached staff-level agreements with The Gambia on reviews of its Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) arrangements, following extensive discussions held in Banjul from April 22 to May 6, 2026, and remotely thereafter. These full agreements mark a significant step in The Gambia's ongoing economic reform efforts.
A key outcome of these discussions was the staff-level agreement on the fifth review of the program supported under the 36-month ECF arrangement. This arrangement, which was initially approved in January 2024, provides total access of SDR 74.64 million (approximately US$102.2 million) to support The Gambia's macroeconomic stability and structural reforms. The agreements, which are subject to approval by the IMF’s Executive Board, include this fifth review of the 36-month ECF arrangement, approved in January 2024 for a total access of SDR 74.64 million (approximately US$102.2 million). A staff-level agreement was also reached on the second review under the 18-month RSF arrangement, which was approved in June 2025 for total access of SDR 46.65 million (about US$63.9 million).
During their mission, the IMF team engaged with key Gambian officials to assess the country's economic performance and policy implementation. The mission met with the Minister of Finance and Economic Affairs, Seedy Keita, and Governor of the Central Bank of The Gambia, Buah Saidy. Ms. Jenkner, the IMF mission chief, provided an overview of the economic situation, stating that "Economic recovery remains strong, while inflation has decelerated." She elaborated that real GDP growth is estimated at 6.0 percent in 2025, a strong figure driven primarily by strong activity in the agriculture and construction sectors. Ms. Jenkner also noted that headline inflation reached 7.0 percent year-over-year in April 2026, representing a significant decrease from its peak of 18.5 percent in September 2023. However, she issued a cautionary note, warning that "the war in the Middle East is expected to affect significantly the macroeconomic outlook and amplify domestic risks in 2026 and beyond." Ms. Jenkner also noted that "Fiscal performance in 2025 was weaker than anticipated," a situation that led to a larger-than-expected fiscal deficit of 5 percent of GDP.
Economic Performance and Program Compliance
The Gambian economy demonstrated resilience, with real GDP growth estimated at 6.0 percent in 2025. This growth was significantly supported by strong activity in the agriculture and construction sectors, indicating a diverse base for economic expansion. Despite the positive growth trajectory, the nation continues to grapple with inflationary pressures. Headline inflation reached 7.0 percent year-over-year in April 2026, marking a considerable decrease from a peak of 18.5 percent year-over-year recorded in September 2023. However, despite this deceleration, the current headline inflation rate remains above the Central Bank of The Gambia's medium-term target of 5 percent, showing the need for continued vigilance in monetary policy.
Fiscal performance in 2025 was weaker than anticipated, according to Ms. Eva Jenkner, the IMF mission chief. Ms. Jenkner provided specific details on the fiscal challenges, stating, "Fiscal performance in 2025 was weaker than anticipated. While tax revenue overperformed, spending exceeded targets due to unbudgeted spending on transfers, arrears payments, emergency subsidies for the National Water and Electricity Company Limited, and emergency support to the National Food Security Processing and Marketing Corporation." She added that this confluence of factors led to "a larger-than-expected fiscal deficit of 5 percent of GDP." Public debt reached approximately 79 percent of GDP in 2025, which Ms. Jenkner noted "remains sustainable." She further cautioned that "given limited fiscal buffers, fiscal policy will need to remain prudent while managing the challenging impact of the war in Iran which will require the reallocation of some expenditure."
Regarding program compliance under the ECF arrangement, Ms. Jenkner reported that "Five out of seven quantitative performance criteria (QPCs) for end-December 2025 were met." She elaborated further on the missed targets, stating, "Two QPCs were missed by a large margin mainly due to expenditure overruns." Despite these challenges, she noted a positive trend, confirming that "All indicative targets were met." In terms of structural reforms, progress has been substantial, with five out of six structural benchmarks having been completed. Ms. Jenkner stated that these benchmarks aimed "to improve public financial management, statistics and financial sector stability," and that "the last measure is expected to be taken within the coming weeks," indicating ongoing commitment to structural reforms.
Key Policy Recommendations
The Central Bank of The Gambia (CBG) should maintain a tight policy stance and integrate forward-looking analysis to return inflation to its medium-term target of 5 percent, according to Ms. Eva Jenkner. Ms. Jenkner provided detailed recommendations for monetary policy, stating, "The Central Bank of The Gambia (CBG) should keep a tight policy stance and incorporate forward-looking analysis to bring inflation back to its medium-term target of 5 percent. The exchange rate should be determined by market forces by limiting foreign exchange market interventions to the mitigation of excessive market volatility and to reserve accumulation. The CBG is strongly encouraged to focus on its core mandate and cease any financial assistance, whether directly or indirectly, to the public sector. The ongoing revision of the CBG Act should reflect these principles. The banking sector remains sound, though high exposure to the public sector deserves scrutiny."
The IMF also noted that the banking sector in The Gambia currently remains sound, a key element for financial stability, although the high exposure of banks to the public sector warrants careful scrutiny and monitoring. In a positive development for fiscal management, Gambian authorities are now equipped to incorporate analysis of fiscal risks into their budget process, a development intended to improve financial planning and management and enhance transparency. This new capability will allow for more informed decision-making regarding public finances.
The successful agreement on the reviews for both the ECF and RSF arrangements would enable a disbursement of SDR 6.22 million, which is approximately US$8.5 million, under the ECF. This additional funding would significantly increase the total disbursement under the Extended Credit Facility (ECF) arrangement to SDR 55.97 million, equivalent to about US$76.6 million, providing key support for The Gambia's economic program. The disbursement under the Resilience and Sustainability Facility (RSF) would bring the total amount received under that arrangement to SDR 25.9 million, which translates to approximately US$35.5 million, aiding the country's efforts to build resilience against climate change and other long-term structural challenges.
Future Support and Outlook
The staff-level agreement reached with The Gambia includes a six-month extension of the Extended Credit Facility (ECF) arrangement, moving its duration to July 2027. This extension provides additional time for The Gambia to implement its reform agenda and consolidate economic gains. This extension is coupled with an augmentation of access by SDR 12.44 million, equivalent to approximately US$17.0 million. This additional funding is specifically intended to assist The Gambia in addressing current challenges primarily stemming from the ongoing conflict in the Middle East, which has global economic repercussions.
Concurrently, the Resilience and Sustainability Facility (RSF) arrangement will also see an extension of six months, aligning its new end date with that of the ECF, in July 2027. This synchronized extension ensures continued support for The Gambia's long-term resilience goals. Following these agreements, the International Monetary Fund's Executive Board is tentatively scheduled to convene in early July 2026 to review and approve the staff-level agreements. If approved by the Executive Board, this process would enable a disbursement of SDR 10.36 million under the RSF, which translates to approximately US$14.2 million, further bolstering The Gambia's capacity to address climate-related and other structural vulnerabilities. The approval would show the IMF's continued commitment to supporting The Gambia's economic stability and sustainable development.
